Industry Information

Title Production and Investment Rise While Consumption Slows Down
Manager Ralphy Song Department in charge Exhibition Managment Team
Contact 02-3459-0028 Date 2018-02-26 13:56:58.893

[ Korean Market Intelligence ]

 

Production and Investment Rise While Consumption Slows Down

 

 

The Korean economy continues to recover as all industry production and investment rose for the second consecutive month backed by strong exports. However, consumption slowed down due to a base effect.
 
The economy added 253,000 jobs year-on-year in December 2017 as manufacturing and construction job growth improved, despite a slowdown in the service sector. The youth unemployment rate increased (up 8.4%→ up 9.2%, y-o-y).
 
Consumer price inflation in January 2018 fell 0.5 percentage points from the previous month (up 1.5%→ up 1.0%, y-o-y). The index rose 0.4 percent month-on-month due to a price hike in agricultural products.

Facility investment rose for the second straight month in December (up 10.4%→ up 8.9%, m-o-m) due to increased imports in semiconductor manufacturing equipment.  Construction investment fell (down 2.4%→ down 0.3%, m-o-m) due to a slowdown in housing construction, although civil engineering works picked up as public investment in SOC projects increased.

In December, the cyclical indicator of the coincident composite index fell 0.3 points to 100.1, and the cyclical indicator of the leading composite index stayed unchanged from the previous month at 101.2. (MOSF)